New rent law:
MDA concerned on situation and calls for changes before it’s too late
The Malta Developers Association (MDA) is very concerned over how the new rent law, which entered into force at the beginning of the year, is affecting the property market.
Even though less than two months have passed since the introduction of the new system, market data and feedback from industry players already shows a significant dip in the local rental market, as landowners are increasingly reluctant of renting out their properties under the new restrictive regime.
The implementation of the new law is also having a negative effect on the buy-to-rent property segment, which had grown significantly during the past years, and which is now reporting a significant slowdown.
Insecurity, room for different legal interpretations, restrictive rental conditions, bureaucracy and lack of freedom of contract are among the main reasons why this new law is not working and is instead harming the industry and the economy. The law is turning out to be neither in the interests of the landlords nor the tenants.
While fully in favour of a system where leased properties are registered, the MDA calls on the government to immediately take note of the negative situation created by the new law and take concrete measures to tackle the situation before it’s too late.
Changes must include measures to rid landlords and tenants from restrictive rules and ensure a total freedom of contract with much less bureaucracy.
The government must also tackle, without further delay, rules on pre-1995 rent contracts, which have already been declared irregular through various court decisions and which are prohibiting landowners from the full enjoyment of their property.